Wednesday, December 24, 2008

The Abyss stares back...

Music, games and DVD retail chain Zavvi has gone into administration threatening 3,400 jobs. The troubled store was formed in 2007 after a management buy-out of Sir Richard Branson’s Virgin Megastores. Zavvi's main supplier was Woolworths' unit Entertainment UK (EUK), which went into administration on 27 November. The collapse of EUK led to Zavvi's own downfall as the store was unable to stock their shelves.

Meanwhile the tea and coffee chain Whittard of Chelsea, which has 130 stores in the UK and around the world was sold to private equity group EPIC, and the menswear retailer The Officers Club was purchased by its chief executive Dave Charlton, saving . Both businesses had previously called in the administrators this week.
Zavvi placed into administration

With MFI closing down earlier this month (with the loss of 1,400 jobs), and the administrators of Woolworths stating that all the chain's outlets will close by 5 January, the effect on the British retail sector by the global credit crisis can be clearly seen by all.

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